Woodford to leave Invesco

TH1878

A_Flock_Of_Sheep wrote: »

The cheap tracker seems to be an investment style advocated on here quite strongly.

On a money saving website!? Who'd have thought it!

I know all the research in the active v passive debate but my own experience doesn't correspond. I'm sure that the AVERAGE fund is beaten by the index but there's a lot of closet trackers that will never beat the index because of the charges. But there ARE funds that consistently beat the index over a 3-5 year timescale

I've found that by choosing funds based on the fund metrics (risk adjusted return) and reviewing at least annually (I do quarterly) then the performance of the actively managed funds has been far superior...over the last 5 years at least.

Just my own findings. I'm sure other people have different views

redbuzzard

The premium has gone from EDIN for now, and for better or worse I have filled my boots this morning.

The OEICS are valued at the sum of their parts, so the prices can only be affected to the extent that Woodford's departure affects the share prices of GSK, BT, BAT etc. That doesn't seem to have happened.

I had been toying with the idea of EDIN anyway and only the premium put me off. The yield has just improved by 5% so I have jumped on it. If Woodford stops running EDIN it may well be Barnett who takes over anyway.

Whilst this was always going to hurt Invesco, they would have been nuts not to plan for it - he could have fallen under a bus if he hadn't left. I see no reason to think the sky will fall in, sentiment doesn't hurt open ended funds in the same way as shares, and wherever the price of EDIN settles it's better with 5% off than it was this time yesterday, and I can't see it being lower in discount/premium terms when the uncertainty has cleared. But what do I know!

A_Flock_Of_Sheep

I'm going to fill my boots too it's down another 3% today.

A_Flock_Of_Sheep

Redbuzzard what did you pay today per share and can I be cheeky enough to ask how much you put in? The yield is high today.

A_Flock_Of_Sheep

Now £5.48 per share

The premium must be well and truly slaughtered?

redbuzzard

A_Flock_Of_Sheep wrote: »

Redbuzzard what did you pay today per share and can I be cheeky enough to ask how much you put in? The yield is high today.

£5.60. Driven down a bit since, mildly irritating but if I got upset at not buying at the bottom I'd never be happy.

I used what spare cash we had in the ISAs, which was about 6% of our total S&S ISA holdings. More than I would usually put in a single stock, but then it's not really a single stock...

A_Flock_Of_Sheep

If you check the disclosure it has I think 50 ish shares. I actually held it but sold my holding yesterday when I saw the announcement. It dropped then gained then dropped. I have had it since June and made just over £460 profit plus one dividend. I know it's bad practice to sell and then re enter but by today's drop and yesterday's I am glad I did.

Hopefully re entering is based on no premium and the fund and my faith in the shares not the fund manager name

Clearly Woodfords name was worth nearly 12% of the price.

redbuzzard

A_Flock_Of_Sheep wrote: »

Clearly Woodfords name was worth nearly 12% of the price.

Up to a point Lord Copper.

The way I see it is past performance, and the expectation of the future being like the past were worth the premium, though I can't get comfortable with big premiums on ITs which is why I didn't hold it.

The price movement as with anything is supply and demand, created in turn more or less by sentiment - more rather than less yesterday. Remove the uncertainty that currently exists and sentiment will change, one way or the other.

I'm actually surprised the price is so far down, so I am clearly not the best person to predict what happens next. But I have enough scars to have learned to live with my decisions.

A_Flock_Of_Sheep

At approx 546 to 548p this must surely be trading at a discount

Glen_Clark

A_Flock_Of_Sheep wrote: »

At approx 546 to 548p this must surely be trading at a discount

Now 554 which suggests a discount of 3% on the last published NAV of 571.13
Doesn't look particularly cheap to me.
It would have to drop a lot further to get down to the sector average.
I hold CLDN at 22% discount.

http://markets.ft.com/research/Markets/Tearsheets/Summary?s=EDIN:LSE